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Ericsson (Telefonaktiebolaget LM Ericsson) (OMX: Eric B, NASDAQ: Eric), one of Sweden’s largest company, is a leading provider of telecommunication and data communication systems, and related services that include a variety of technologies, including in particular the cellular network. And indirectly through its subsidiaries, which also has a major role in mobile devices and TV cable and IPTV systems.

Founded in 1876 as an equipment repair shop by Lars Magnus Ericsson’s telegram, he entered on August 18, 1918. Headquartered in the cyst, the City of Stockholm, since 2003, LM Ericsson is considered part of the so-called “Wireless Valley”. Since the mid-1990s, Ericsson is very broad in Stockholm helped transform the capital into one of the research centers of information technology (IT) European. Ericsson has offices and operations in more than 150 countries, with more than 20,000 staff in Sweden, and also in significant presences, for example, China, Britain, the United States, Finland, Ireland, and Brazil.

HISTORY

Establishment

Lars Magnus Ericsson started with a phone in youth associations as an instrument maker. He worked for a company that makes equipment for firms Telegrafverket Sweden telegram. In 1876, aged 30 years, he began building a telegraph repair shop with the help of his friend, Carl Johan Andersson. Shops in central Stockholm (No. 15 on Drottninggatan, the principal shopping street) and improve the foreign phone. In 1878 Ericsson began making and selling its own phone equipment. The phone is not technically innovative, as most have been made by other factories in the United States. In 1878, he has made a joint agreement to provide telephone and supply of switchboards for the first telecommunications company in Sweden, Stockholms Allmänna Telefonaktiebolag.

Also in 1878, local phone importers Numa Peterson hired Ericsson to adjust some of the Bell telephone Company.Dari here he was inspired to buy a Siemens phone and analyze the technology further. (Ericsson Siemens had received scholarships in previous years.) Being a company that works to repair and Trains Telegrafverket Sweden (Swedish Railway), he is familiar with Bell and Siemens Halske telephone. He is improving the design to produce a higher quality instrument. At the end of the year he started from manufacturing the phone itself, a lot of pictures of the Siemens phone, and the first product that has been completed in 1879.

With a reputation that has taken hold, Ericsson is a major supplier of telephone equipment to Scandinavia. Because factories can not keep up with demand, works like wood and metal-plating was contracted out. Many of the imported raw materials, so that in the following decade Ericsson bought into a number of companies to ensure essential supplies such as brass, wire, iron and steel ebonite.

The high price of equipment and services that led Bell Henrik Tore Cedergren to form an independent telephone company in 1883 called Stockholms Allmänna Telefonaktiebolag. As Bell will not provide equipment for its competitors, he formed an agreement with Ericsson, which has delivered equipment for a new telephone network. In 1918 the company Ericsson has joined Allmänna Telefonaktiebolaget LM Ericsson.

In 1884, engineer named Anton Aven at Stockholms Allänna Telefonaktiebolag have merged earpieces and mouthpieces of the (by then) standard phone into handset.Ericsson take these findings and incorporated into Ericsson’s product, beginning with a phone called the Dachshund.

International Expansion

As production grew in the late 1890s, and the Swedish market seems to be reaching saturation, Ericsson has been able to expand to overseas markets through a number of agents. Britain and Russia are beginning Ericsson’s market. This eventually led to the establishment of factories in these countries. This is partly to improve opportunities for local contracts, and partly because the factory in Sweden not to maintain supply. In England, the National Telephone Company (National Telephone Company) have included Ericsson equipment for some time and is a customer utama.Pada 1897, the UK has contributed 28% of sales have become subscribers of other Ericsson.Negara Ericsson also, driven by rapid growth of telephone service in Sweden. Australia and New Zealand, which in the late 1890s was the largest market of non-European Ericssons.

Although they were successful elsewhere, Ericsson does not make significant sales in the United States. The Bell Group and local companies such as Kellogg and Automatic Electric had already mastered this market. In contrast, sales in Mexico quite well and lead to further development to countries of South America. South Africa and China also produce significant sales. With multinational companies now, and highly developed, Lars Ericsson is stepping down from the company in 1901.